The National Pension Commission (PenCom) has warned employers against withholding deducted pension contributions of workers without swift remittance to Pension Fund Administrations (PFAs).
PenCom disclosed that efforts are underway to strengthen enforcement provisions in the proposed new Pension Reform Act (PRA), including the introduction of possible criminal sanctions against defaulting employers.
Director-General of PenCom, Omolara Oloworaran, stated this in Lagos while addressing journalists at the Pension Revolution Summit, themed ‘A 365 Days Scorecard’ .
She warned that sanctions await non-compliant employers and urged them to turn a new leaf.
Oloworaran also dismissed claims that PFAs deliberately frustrate retirees, stressing that it is in their interest for pensioners to remain alive and continue receiving their benefits.
“No PFA wishes anyone dead. Even in the event of death, the funds are paid to beneficiaries. It is actually in their interest for retirees to stay alive and receive their pensions gradually,” she said.
While acknowledging that poor service delivery remains a major source of complaints in the industry, the PenCom boss explained that many grievances stem from communication gaps rather than deliberate wrongdoing.
“As things stand today, PFAs are paying retirement benefits in real time. Some process payments within 24 hours. As of July, PFAs are not owing verified retirees,” she said, urging aggrieved pensioners to forward complaints to the commission.
On states’ participation in the Contributory Pension Scheme (CPS), Oloworaran said only eight states are currently at varying levels of compliance, adding that engagement with state governments is being intensified.
“Our preference is engagement, not confrontation. But if engagement fails, we will explore stronger measures,” she said.
She also disclosed that PenCom is developing a Customer Relationship Management (CRM) system that will allow contributors and retirees to log complaints directly against PFAs, with real-time regulatory oversight. The system is expected to be fully deployed by June 1, 2026.
